Particular stock has increased in value

Assignment Help Financial Management

Reference no: EM131553936

1. Sam, an avid day trader, has noticed that a particular stock has increased in value in each of the last three trading days. Given this trend, he believes the stock price will increase over the next two trading days. This is an example of:

a. a timing decision.

b. irrational exuberance.

c. representativeness.

d. conservatism.

e. arbitrage.

2. Your best friend works in the finance office of the Delta Corporation. You are aware that this friend trades Delta stock based on information he overhears in the office. You know that this information is not known to the general public. Your friend continually brags to you about the profits he earns trading Delta stock. Based on this information, you would tend to argue that the financial markets are at best _____ form efficient.

a. weak

b. semistrong

c. semiweak

d. strong

e. perfect

Reference no: EM131553936

Questions Cloud

Compute net present worth-benefit-to-cost ratio : Use a discount rate of 5% to compute net present worth, benefit-to-cost ratio, and net equivalent uniform annual benefit.

Program to improve a ferry system : A program to improve a ferry system by adding new technology has much promise.

Firm would be paid first in bankruptcy liquidation : Which one of the following claims on a firm would be paid first in a bankruptcy liquidation if the court adheres to the absolute priority rule?

Disadvantage to firm as soon as firm earnings : Leverage becomes a disadvantage to a firm as soon as the firm's earnings before interest:

Particular stock has increased in value : Sam, an avid day trader, has noticed that a particular stock has increased in value in each of the last three trading days.

What is the effective annual interest rate of the loan : what is the effective annual interest rate of the loan?

Variable cost per unit have on the operating cash flow : What effect would a decrease of $1 in the variable cost per unit have on the operating cash flow?

Weak form efficiency is best defined as a market : Weak form efficiency is best defined as a market where current prices are based on:

First step an investor takes when making an investment : What is the first step an investor takes when making an investment decision according to the separation principle?

User Account

All Pages